How People Get Life Insurance with No Medical Exam

Applying for life insurance the traditional way can be a lengthy process. Typically, a low-cost insurance policy comes with heaps of paperwork, a requirement to undergo medical examinations, urine and blood tests, and a two-month processing time.

However, insurance companies now offer a simple solution called instant life insurance. This policy delivers prompt coverage without the need for a medical exam.

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What Is Instant Life Insurance?

As the name suggests, instant life insurance refers to a policy that does not take too much time to apply for and process. You can submit an application online, which can take up to a few minutes to process. 1

Instant life insurance does not require a medical examination. With that said, this type of insurance is different from guaranteed issue life insurance. Guaranteed life insurance liberates the applicants from submitting any information about their medical history. With that said, it does have a high cost and low coverage.2

On the other hand, instant life insurance gathers your medical history through a process called accelerated underwriting. With this technique, your medical history is gathered from different sources and is used to create a data funnel. The data funnel is then inserted into an algorithm that assesses your risk of dying at a younger age.

The insurance company uses this information to determine if you are a suitable candidate for life insurance coverage. As the application is processed in minutes, you are returned with a coverage offer right away. If your application is accepted, you are required to e-sign the papers and make your first payment to complete the process.

Instant life insurance does not compromise coverage either. Depending on the company you are signing up with, you can get coverage for any amount ranging from $10,000 to $8 million.3

You can also choose an insurance company that offers flexibility in the insurance term. For instance, if you apply for whole life insurance, you will get lifelong coverage. Whereas with a term-based policy, the coverage would last for a limited duration.

Why Choose Instant Life Insurance

Research shows that only 54 percent of the whole population in the United States has coverage for life insurance. This is because most individuals make the mistake of waiting until they are older to find an appropriate plan for themselves.4

However, according to Business Insider, the best time to get life insurance coverage is in your 20s, as your health is in its optimal stage. Since aging can result in more vulnerability to diseases and health conditions, the insurance premium also increases.5

This makes instant life insurance the most suitable option for young adults looking for life insurance coverage. As the application process is simple and convenient, you can quickly sign up and receive a quote for your coverage plan.

Moreover, since the application is submitted online, you do not have to get extensive checkups or submit any blood or urine samples. In most cases, the insurance companies require you to answer a series of questions or fill out online forms.

Apart from the information you provide, the system gathers data on you from external sources. For instance, if you had previously applied for life insurance, the Medical Information Bureau would have your previous records, which the insurance company then accesses. Additionally, your prescription drug report is examined to determine the medications prescribed to you. The insurance companies may also go through your motor vehicle report to ensure that you are not a reckless driver.

Furthermore, instant life insurance offers competitive rates. Depending on your insurance company and medical profile, the coverage can go up to $8 million.6

How Do You Apply?

You can conveniently get instant life insurance by applying online. Although, before signing up, it is recommended to familiarize yourself with the underwriting methods.

There are three main types of underwriting approaches that insurance companies employ:

  1. Automated underwriting solely relies on an algorithm for approval.
  2. Accelerated underwriting creates a data funnel run through an algorithm to decide if the application fits the criteria for approval.
  3. Simplified issue underwriting requires less data in contrast to accelerated underwriting. Although, low coverage is offered since the risk is high.

If you want to maximize your insurance coverage, choose a company that provides accelerated underwriting. Then, you can research your options and find a firm that best meets your requirements.

Once the insurance company is selected, you can follow these steps to submit your application:

Step 1: Fill Out the Application

The first step is to fill out the application profile using your personal and contact details. Some applications also include medical questionnaires inquiring about your health and lifestyle.

Step 2: Grant Permission to Retrieve Information

Once the essential information is filled out, the insurance company requires your permission to access various databases to extract your medical and personal information.

Step 3: Wait For Approval

Instant life insurance typically provides a decision within a few minutes. Then, your application can either be approved, denied, or referred to an underwriter.

The Outcome

In case your application is approved, you can move forward in the process by accepting the quote with an e-signature and making your first payment.

If your application is denied, you can still apply for an instant life insurance policy. However, you may not get coverage. In the unfortunate case that your application is rejected, you have the option to apply for typical life insurance or guaranteed issue policies.

A third outcome of submitting your application would be “referred to the underwriter.” This message usually pops up when the information provided is not sufficient to make a decision. In this case, the insurance agency would send the application to an experienced underwriter for risk assessment. The underwriter would then contact you directly to gather the information they require.7